Audit Report and Internal Control Evaluation
- Due Jan 19, 11:59 PM
- Not Submitted
- POINTS 10
- Assignment Files
Evaluate the evidence provided by Apollo Shoes.
Decide how to structure the audit report for the provided evidence.
Compose an audit report reflecting the appropriate length, sections, and content for the provided information but no more than 1,400. In addition to the Audit Report, include the following:
- A description of the evidence
- A description of the accounting sampling and testing procedures used
- A rationale as to why the type of audit report selected was chosen and the value of the audit report.
**Use Ch. 3 of Auditing and Assurance Services to complete the assignment.
There are a few things that I’d like you to pay close attention to in the Apollo Shoes case.
1. Mall-Warts filed bankruptcy, which means Apollo Shoes will not be receiving the money that Mall-Warts owes for the shoes that were shipped to them in December. Apollo Shoes’ management has recorded the sale, so net income is overstated.
2. Apollo Shoes is dealing with an ongoing strike.
3. Apollo Shoes financed their operations through 2007 with debt instead of sales revenue.
These items don’t necessarily mean that the company’s financial statements aren’t presented fairly, so it doesn’t mean that you need to issue an adverse opinion.
Remember to include information regarding the company’s internal control over financial reporting. You’ll add this after your opinion paragraph but before your signature.
Please let me know if you have any other questions. There will be helpful posts made in the “miscellaneous topics” thread throughout the week.
P.S. The items that I mentioned above need to be mentioned in the report